Gujarat State Fertilizers & Chemicals posted a strong set of numbers for Q4 and FY 2025-26, powered by surging fertilizer sales, record quarterly revenue and a sharp jump in industrial products profitability despite global geopolitical turbulence and raw material inflation.
The company reported a 15% rise in operating revenue to Rs. 10,827 crore for FY 2025-26, while operating EBITDA jumped 24% year-on-year to Rs. 781 crore. Profit Before Tax climbed 13% to Rs. 838 crore and Profit After Tax rose 14% to Rs. 652 crore.
GSFC also delivered its highest-ever quarterly sales in Q4 FY26 at Rs. 2,622 crore, driven by a blockbuster performance in the fertilizers business.
The Fertilizer segment emerged as the key growth engine during the year, with sales surging by Rs. 1,196 crore, up 17%, while volumes climbed 12% from 19.88 lakh metric tonnes to 22.31 lakh metric tonnes. Urea, APS and AS led the growth momentum.
In a major operational milestone, the company achieved its highest fertilizer production in the last five financial years at 17.59 lakh metric tonnes, even as margins came under pressure from soaring global prices of sulphur and sulphuric acid triggered by geopolitical tensions.
The momentum accelerated sharply in the fourth quarter. GSFC’s fertilizers division clocked its highest-ever quarterly sales of Rs. 1,985 crore in Q4 FY26, registering 43% growth in sales value and a massive 49% jump in sales volumes compared to Q4 FY25.
The Industrial Products segment also staged a powerful turnaround, delivering its highest yearly profitability in four years and strongest Q4 EBIT performance in the last 10 quarters.
Segment sales rose 9% year-on-year to Rs. 202 crore, while EBIT skyrocketed from Rs. 56 crore to Rs. 200 crore. The growth was driven by higher sales of Technical Grade Urea, HX Crystal and traded Ammonia, along with a strategic push in Melamine exports aligned with Government of India trade facilitation initiatives.
However, the segment faced pressure from weaker realizations in Caprolactam and Nylon products, with the Capro-Benzene spread narrowing to an average of USD 535 per MT compared to USD 578 per MT in FY25.
Despite heightened geopolitical uncertainty and supply chain disruptions, GSFC said it maintained uninterrupted operations through “agile operational planning and dynamic optimization of product mix.”
The company added that “Proactive pricing interventions and real-time recalibration of production strategy enabled the Company to mitigate the impact of sharp fluctuations in key raw material prices and preserve profitability across business segments.”
GSFC continued to strengthen its export strategy in chemicals, especially Melamine exports, betting on India’s expanding global trade agreements and FTAs to improve long-term competitiveness.
On the expansion front, the company said projects worth Rs. 675 crore were capitalized during FY26 as part of its capex-led growth roadmap.
Looking ahead, the company warned that the fertilizer business will continue to operate in a volatile environment during Q1 FY27 due to geopolitical instability in the Middle East and fluctuating raw material prices.
At the same time, GSFC said the government’s decision to raise Nutrient-Based Subsidy support by 10% for Nitrogen, Phosphorus and Sulphur signals strong policy backing ahead of the Kharif season.
The company also flagged weather risks, saying the progress of the southwest monsoon and possible El-Nino conditions will remain key demand drivers in the coming quarter.
